A fixed annuity makes sense depending on a person's situation. What it does provide is steady income on a regular basis when the income period is turned on, and safety of principal during the growth period. The most important thing about a fixed annuity is the rating and claims paying ability of the carrier that offers it because they are making a promise to provide the annuitant (i.e. that person who receives the benefit) a "paycheck" at a specified time as well as a "fixed" rate of return prior to the income phase. If you are worried about market risk, this may be an alternative.
I would recommend that you buy and read a book by Tom Hegna, "Paychecks and Playchecks". It explains why people should consider an annuity as well as other products and then consult a qualified financial advisor.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
A fixed annuity addresses the major concern of most retirees, living too long and running out of money. A fixed annuity eliminates market risk and guarantees safety of payments for the rest of your life. A fixed annuity has a rate of return that many find quite attractive. It is the simplest piece of the retirement income puzzle and should at a minimum provide an economic floor for you.
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I would recommend that you buy and read a book by Tom Hegna, "Paychecks and Playchecks". It explains why people should consider an annuity as well as other products and then consult a qualified financial advisor.